Market Trends of Handbags Industry
Influence of Social Media and Aggressive Marketing Strategies
- The growing influence of social media is a critical factor for players to make their brand presence in the handbag business. Celebrities, influencers, and fashion bloggers exhibiting their outfits on social media platforms such as Facebook and Instagram have inspired people to purchase more fashion accessories.
- Companies are experiencing significant changes in how they engage with customers as social media and internet shopping become more mainstream across generations. In addition, companies are more focused on marketing and advertising their products to reach the intended audience. Celebrity endorsements of new designs and collections by brands help sales of many types of handbags among the young population. Thus, these days, celebrities endorse branded fashion products such as watches, bags, apparel, and footwear, among others, on their Facebook pages, Instagram profiles, and Snapchat stories to increase the sales of fashion products.
- For example, In April 2021, Balenciaga, a luxury fashion brand of Kering Group, entered the South American market by launching its products through the Iguatemi 365, an online platform of conglomerate Iguatemi Group. More options to reach consumers have emerged due to mobile phone proliferation.
- Furthermore, consumers are adopting and discarding fashion trends faster than ever because of social media. Over the last few years, social media has had the most significant impact on the fashion business. For instance, the survey conducted by UNCTAD (United Nations Conference on Trade and Development) in association with the NIC.br (Brazilian Network Information Center) in October 2021 revealed that online purchases had increased by 6-10% across different product categories, including personal care, cosmetics, and fashion accessories.
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Europe and North America are Leading the Market
- The European handbag market is driven by evolving fashion trends, particularly among millennials. Due to the growing demand for personalized products, key players offer customized handbags to increase their customer base, resulting in sales growth. Further, key players use customer interaction platforms to get feedback regularly.
- Moreover, the growing convenience of online shopping has led to a significant shift in consumer preferences toward purchasing handbags through e-commerce platforms, including third-party channels, such as Amazon and Zalando, and the company's websites.
- Furthermore, the number of international tourists visiting European countries is expected to support the sales of bags. For example, according to the World Tourism Organization, Europe reported the highest volume of inbound travelers in 2021, with roughly 288 million arrivals. As per the analysis, Italy and France are expected to remain among the top countries for luxury shopping in Europe, Germany, and the United Kingdom. Moreover, consumers' shift toward sustainable fashion influences key brands to replace animal-sourced leather with vegan leather in newly launched handbags.
- For instance, in 2022, Cardiff-based start-up company Dozi-imp launched its first collection of artisanal, luxury vegan leather handbags. These handbags are made from Pinatex, an innovative vegan leather made from waste leaves of pineapple, developed by the UK-based ananas anam.
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